Madison Theater negotiations extended to August

Monday

Jun 23, 2014 at 4:09 PMJun 23, 2014 at 6:15 PM

Nick Vlahos of the Journal Star

PEORIA — Negotiations about a possible sale of the Madison Theater are in double overtime.

For the second time, the deadline for purchase talks between NXG Developments and the owners of the historic Downtown Peoria theater have been extended. The new deadline is in August, according to Assistant City Manager Chris Setti and Katie Arnholt Kim, an NXG partner.

When contacted Monday, Arnholt Kim said she was uncertain about the date. Mid-month is likely.

“It’s a very complex deal,” she said. “You’re always trying to get to that win-win point. We’re still working on it at this point, really heavily."

“Everybody’s got to give a little bit. A true win-win situation means everybody gets a little bit of what they want.”

The Comfort family trust owns the Madison, which opened in 1920 but has been closed for about 12 years.

In February, city officials selected NXG to negotiate with the Comforts for a 90-day exclusive period. Once that deadline passed, it was extended to June 13.

The city is an intermediary regarding the fate of the former motion-picture house and concert venue at 502 Main St.

Part of the proposed Madison rehabilitation is a multistory, mixed-use structure to be built atop a city-owned parking lot at Madison Avenue and Hamilton Boulevard. The appeal of the parking-lot proposal has been enhanced in recent months, according to Arnholt Kim.

“There are a lot of businesses that have space requirements that cannot be met within the existing market,” she said. “Mostly it’s office space, but that’s only a small percentage.”

Arnholt Kim also cited a demand for residential options Downtown.

The post-sale fate of the Madison and adjacent retail space along Main Street appears uncertain. It depends on the cost of acquiring the building, Arnholt Kim said. A renewed Madison might play host to concerts, live theater or something else, including a conference site.

Once the Comforts respond to a letter that outlines details, NXG intends to submit its full plan to the city, Arnholt Kim said.

“We’ve had multiple meetings, pretty much every single week,” she said. “The city has been really great to discuss details of the project with.”

Nick Vlahos can be reachedat 686-3285 or nvlahos@pjstar.com.Follow him on Twitter @VlahosNick.